Risk of deeper pullback on break of 10DMA
Cable remains in red on Thursday following repeated upside rejection and formation of bearish engulfing on Wednesday that generated initial reversal signal after larger recovery was capped by 200DMA.
Daily chart momentum is about to break into negative territory and stochastic is heading lower after reversal from overbought zone that boosts bears for attack at 10DMA pivot (1.2425), loss of which would signal deeper pullback.
Caution on repeated failure to break 10DMA as this would keep the pair in extended consolidation between 200DMA and 10DMA and sideline immediate downside risk.
Res: 1.2527; 1.2574; 1.2597; 1.2630
Sup: 1.2460; 1.2425; 1.2355; 1.2311